GST Reforms to Drive Consumption Growth, Says Mukesh Ambani

The retail arm of conglomerate Reliance Industries (RIL) announced on Thursday that it would pass on the benefits of the recently reduced goods and services tax (GST) rates to consumers. Chairman Mukesh Ambani praised the Centre’s reforms, describing them as a key driver of consumption-led growth.

“The GST rationalisation is a progressive move that makes products and services more affordable for consumers, simplifies business operations, reduces inflation, and stimulates growth in the retail sector,” Ambani said. He added that the latest tax reforms are expected to act as a positive catalyst for the Indian economy.

GST Reform Unveiled

On Wednesday, the government announced a major overhaul of India’s GST system, reducing the previous five-tier structure to two main slabs of 5% and 18%, along with a special 40% rate on luxury and “sin” items such as tobacco, cigarettes, and gutkha.

Essential staples, including UHT milk, packaged paneer, and common Indian breads—like roti, paratha, parotta, and even pizza bread- have been moved to a zero-tax category to ease household expenses.

The revised GST rates will come into effect on September 22, just ahead of the festive season—including Navratri, Dussehra, and Diwali, when consumer spending typically rises.

Reliance Retail Pledges to Pass on GST Benefits

“The new GST regime is a transformative step that eases household budgets and simplifies compliance for businesses, creating a win–win for both consumers and industry. Reliance Retail is committed to passing the full benefit of the revised GST rates to customers from Day 1 across all product categories,” said Isha Ambani, Executive Director at Reliance Retail Ventures Ltd.

Under the new structure, several items previously taxed at 12% or 18%—including butter, ghee, cheese, condensed milk, snacks, pasta, baked goods, chocolates, dried fruits and nuts, as well as personal care products like shampoos and toothpaste- will now attract just 5% GST, making them significantly more affordable.

Consumer Benefits

Reliance Retail stated that it will ensure consumers directly benefit from the reduced costs. “Reliance Retail is fully committed to passing the entire benefit of this reform to our customers promptly and transparently. Our promise is simple: whenever costs decrease, the savings must reach our customers’ wallets,” said Isha Ambani.

The company added that the GST reforms would generate opportunities across the entire retail value chain, benefiting farmers, MSMEs, producers, suppliers, kiranas, and consumers alike.

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